IVV vs TDTT
iShares Core S&P 500 ETF vs FlexShares iBoxx 3 Year Target Duration TIPS Index Fund
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | IVV | TDTT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.18% | |
| AUM | $907.0B | $2.5B | |
| Dividend Yield | 1.10% | 5.14% | |
| Holdings | 508 | 24 | |
| YTD Return | +12.28% | +1.85% | |
| 1Y Return | +20.94% | +2.76% | |
| 3Y Return (annualized) | +21.81% | +5.17% | |
| 5Y Return (annualized) | +13.05% | +2.73% | |
| Volatility (annualized) | 15.1% | 2.7% | |
| Max Drawdown | -56.5% | -8.3% | |
| Fund Family | iShares by BlackRock (US) | Flexshares Trust | |
| Category | Equity | Fixed Income | |
| Inception | May 15, 2000 | Sep 19, 2011 |
IVV vs TDTT Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and FlexShares iBoxx 3 Year Target Duration TIPS Index Fund (TDTT) is a ETF from Flexshares Trust. Over the past year IVV returned +20.94% while TDTT returned +2.76%. Year to date, IVV is up 12.28% versus a gain of 1.85% for TDTT.
Over three years, IVV compounded at +21.81% per year against +5.17% for TDTT; over five years the annualized figures are +13.05% and +2.73% respectively. Across the full 15-year window we track, IVV has the edge at +6.98% annualized vs +1.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.7% for TDTT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for IVV and -8.3% for TDTT. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVV charges 0.03% per year while TDTT charges 0.18%. On a $10,000 position that is $3 vs $18 annually, a gap of $15 per year that compounds over a long holding period. On income, IVV currently yields 1.10% against 5.14% for TDTT.
Holdings Overlap
IVV and TDTT share 0 holdings out of 524 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IVV or TDTT?
IVV has an expense ratio of 0.03% while TDTT charges 0.18%. IVV is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, IVV or TDTT?
Over the past year IVV returned +20.94% vs +2.76% for TDTT, so IVV leads on 1-year performance. Over the longest common window we track (15 years), IVV annualized +6.98% vs +1.45% for TDTT. Past performance does not guarantee future results.
Which is riskier, IVV or TDTT?
IVV has been the more volatile fund at 15.1% annualized versus 2.7% for TDTT. Worst drawdown: IVV -56.5% vs TDTT -8.3%.
Should I hold both IVV and TDTT?
IVV and TDTT have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVV and TDTT?
IVV and TDTT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 524 unique securities.
Which pays a higher dividend, IVV or TDTT?
IVV yields 1.10% while TDTT yields 5.14%, so TDTT currently pays the higher dividend yield.
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